Should You Get a Loan Modification?

 Posted on January 16, 2025 in Home Ownership and Bankruptcy

It is stressful to face the potential foreclosure of your home. Yet there are practical solutions to avoid foreclosure. Even before thinking about a more significant step like filing for bankruptcy, one way to avoid foreclosure is by negotiating a loan modification with the bank. 

Foreclosures are inconvenient and expensive for banks, which is why banks sometimes have an incentive to negotiate a financial solution that works for you to repay your loan.  An experienced Greenbelt, MD foreclosure defense attorney can assist you with your loan modification. 

What Is Mortgage Loan Modification?

A loan modification is a long-term mortgage relief option for borrowers. It is an opportunity to renegotiate the terms of their mortgage loan to make the payments more manageable. A loan modification lowers monthly payments by reducing the interest rate, reducing the principal balance, or changing the loan term. If approved by the lender, a loan modification is a good way to avoid foreclosure. 

How Do I Obtain a Loan Modification?

To obtain a loan modification, the borrower will generally contact the servicer for the lender and request to renegotiate the loan. The process involves filling out an application and providing documentation showing that you qualify for a loan modification, which usually involves: 

• Showing that you are one month or more behind on payments

• Providing proof of financial hardship

• Providing proof that your home is your primary residence

How Can a Loan Modification Lawyer Help?

Modifying a loan can be a complicated process, and there is a great deal at stake. A knowledgeable loan modification attorney will walk you through the multiple lender and government program options that are available to modify your loan. Your lawyer will help you determine your eligibility.  Next, they will generally prepare a proposal for the loan modification, submit it to lenders, and advocate for you to receive favorable terms throughout the process. 

An attorney can also assist with obtaining, filling out, and submitting all relevant paperwork and supporting documents on time. Finally, your attorney will communicate with the lender on your behalf and address any questions you may have. In short, an attorney will represent your interests in a complex process.  

Contact a Greenbelt, MD Loan Modification Attorney

If you have fallen on hard times and have been unable to make your mortgage loan payments, the experienced College Park, MD foreclosure defense attorney can represent you with your mortgage loan modification. At The Law Office of Donald L. Bell, attorney Donald Bell provides hands-on guidance to clients to address the situation pragmatically and find the best solution for them. Call our law firm at 301-614-0535 for a complimentary consultation.